In terms of stocks, ICICIdirect list out top 10 largecaps which saw buying by fund managers in April include names like Vodafone Idea, DLF, BHEL, Indiabulls Housing Finance and SAIL.

Mutual fund (MF) inflows moderated in April even though Indian stock benchmarks rewrote history. The Sensex touched a fresh record high of 39,487 on April 18 while the Nifty50 hit 11,856 the same day.

The industry kicked off 2019-20 on a positive note as total asset under management (AUM) increased 4.2 percent month-on-month to Rs 24.8 trillion in April, primarily led by inflows in income and debt-oriented schemes.

However, equity inflows, including ELSS and arbitrage, saw a slowdown, with net inflows of Rs 5,800 crore in April 2019, compared to Rs 7,800 crore recorded in March 19, data showed,

However, April flows cannot be compared to the previous month as the former is in the new format prescribed by SEBI, with focus on regrouped and reclassified schemes, Motilal Oswal said in a report.

“Net inflows moderated in April as nervousness gripped markets owing to credit events, rating downgrades, global trade war tensions, and uncertainty over the outcome of general elections,” it said.

Equity mutual funds attracted steady flows, largely due to investor participation through systematic investment plans (SIPs). Total amount garnered through SIPs stood at Rs 8,240 crore in April, which translates into over 2 percent rise on a month-on-month basis, and up about 23 percent from a year ago.

Experts feel that fund managers might be holding a small percentage of AUM in cash which could be deployed once the election uncertainty is over.

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